TIPS FOR DONORS ON CHARITABLE GIVING

Introduction

Charities provide many beneficial services to the community in
important areas like education, religion, health care and relief
of poverty. To carry out their charitable work, charities often
solicit donations by telephone, mail or in person. Most
charitable solicitations are reputable but some are not.

Here are some tips to help you make sure your donations are
used for the good work you wish to support. Remember it's your
money. If in doubt say NO, until you get the information you
need. A donor's best protection is to educate themselves about
the charity.

Tips on Dealing with Canvassers and Telephone Solicitations

Many people who solicit funds are volunteers who donate their
time to raise funds for their charity. But some canvassers or
telephone solicitors work for profit-making businesses that are
paid to collect money for charity. Others are not collecting for
charity at all.

If you are concerned about the legitimacy of a charity,
satisfy your concerns before you donate. You're not wasting the
canvasser's time by asking questions. If you aren't satisfied
with the answers, or still aren't comfortable giving to the
charity, do not feel pressured to give.

Here are some questions you might want to ask, and some ways
to check out what you are told:

Ask if your contribution can be claimed as an income tax
donation credit. If so, ask for the charity's registration
number. You can check this on the Canada Revenue Agency's
website or by contacting them by phone. Its contact information
is listed below. Not all not-for-profit organizations are
charities. A receipt for your donation is only tax deductible
if an official charitable receipt is issued. Beware, some
questionable organizations use a corporate number to suggest
they are a registered charity. A charity registration number
includes the letters "RR".

Ask for details about the work the charity does and where
it is done.

Ask for the charity's full name and address, who sits on
the Board, and how long it has been in existence.

Ask telephone solicitors where they are calling from.

Ask telephone solicitors to put their request in writing if
that would make you feel more comfortable.

Ask door-to-door canvassers for identification and proof
that they are authorized to solicit funds for the charity. You
can call the organization to make sure the person is
legitimate.

Ask if the canvasser is a volunteer or working for a
commercial fundraiser. Many charities use for-profit
fundraisers to conduct the fundraising campaigns. This is
allowed, but it can be costly. The charity may get less than
20% of what is donated.

Ask what percentage of the donation will go to the charity,
to administration expenses and if there is one involved, to the
commercial fundraiser.

How to Check What you are Told

You don't have to give your donation to the canvasser or
telephone solicitor right away. You can get information from the
canvasser and check it later or you can check the charity's
website.

The best way to make sure your donation is used as intended is
to inform yourself. Check information given by the canvasser or
telephone solicitor with the charity. Ask for written information
about the charity such as brochures describing the charity's work
or annual reports. Be wary of vague answers to questions and be
careful if it appears that the charity is a one-person show.

You can also find out about the charity through other sources.
An on-line search engine of charities registered with Canada
Revenue Agency can be found at www.cra-arc.gc.ca/ebci/haip/srch/advancedsearch-eng.action
from which you can obtain a charity's Public Information Return
which provides some information about the charity's financial
performance. You can also look up the organization on the
Internet or in the phone book or check the organization with your
local Better Business Bureau.

Things to Watch for

Some organizations raise money by using names similar to
the names of well-known charities. Don't be fooled by names
that sound like names you have heard before.

Not all organizations that sound like charities are
charities. For example, some businesses calling to collect used
clothes and furniture may be for-profit businesses.

Never give out personal/financial information, such as your
credit card number, over the telephone.

Charitable donations should be made by a cheque payable to
the charity, not in cash.

Don't be pressured to donate immediately. Be wary if a
telephone solicitor offers to pick your money up immediately.
If unsure, say no.

Don't feel pressure to donate to get a "free" gift. A gift
can reduce the amount of your income tax deduction.

Charitable Giving Plan

You may want to consider making a "Charity Giving Plan" to
plan your donations. The Giving Plan sets out how much you will
give through the year and which charities you will give to. A
Giving Plan helps make your charitable giving fit your budget. It
also helps you to think about the types of charities you want to
support.

If you are asked to give to a charity you are not familiar
with, you can tell them you have a Giving Plan and you need
information and time to determine if this is the type of charity
you want to support.

If you make a Giving Plan, you might want to decide on an
amount to give to charities not listed on your plan. For example,
there may be fundraising campaigns at work or victims of a
natural disaster who need special, and unexpected, help.

Many charities can be helped by donations of goods and
services, in addition to money. Even if you cannot give money or
goods to a particular charity, you might be able to donate your
time or services

Selecting the Charities

There are many well run charities, so it is difficult to
decide which charities to give to.

The best way to choose which charities to support is to become
informed. Many people become familiar with a charity by becoming
involved either as a volunteer or as a user of their services. If
you believe it is a well run and useful charity, then you might
consider giving money to it.

You do not need to limit your donation to an organization you
are involved in. For persons who have the time, they can become
familiar with a charity by using some of the tips previously
mentioned in this bulletin.